Tuesday 8 December 2015

The Huge Role Of International Finance To The Climate Change Talks

The COP21 in Paris looks at finance as its leading obstacle that blocks all possible efforts for climate change. But finance experts such as University of Bath Chair in Environmental Economics Michael Finus beg to differ.



Finus said it is the world's dependence on fossil fuels must end and politicians must deliver their promise. Meanwhile, the financial solutions he proposed can be effective.

Trade Sanctions

Finus pointed out the Montreal Protocol saved the world's Ozone Layer by reducing and ultimately phasing out the use of CFC gases that caused huge holes in the ozone layer. The result had helped the ozone layer recover despite the replacement HFC still adds to the greenhouse effect.

Finus explained that Montreal worked because of the trade sanctions it imposed to countries that did not join the environmental treaty. But it also worked because America, one of the world's biggest economies, had initiated the treaty.

Correlating Border Tax/Foreign Aid With Emissions

The Paris climate agreement will have tariffs posted on all imports produced in countries with high greenhouse gas emissions. The tax adjustment based on emissions will help reduce the eco-dumping that negatively affects members of the agreement.

Technology sharing or direct payments would be the best choice to help development and reduce eco-dumping and ultimately emissions.

International Deposit System


Industrialised nations may find the fines for emissions minimal. Finus proposed that developed nations who violate agreements formed in Paris should have the interest rates of their deposit to a agreement members-made fund frozen until they have complied with the requirements.